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Beckshire Company has a $25,000 pure discount bond that comes due in one year. The...

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Finance

  1. Beckshire Company has a $25,000 pure discount bond that comes due in one year. The risk-free rate of return is 3 percent. The firm's assets are expected to be worth either $23,000 or $37,000 in one year. Currently, these assets are worth $27,000. What is the current value of the firm's debt?

    $26,353.92

    $18,761.73

    $20,495.38

    $22,997.23

    $24,580.66

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